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Part 1 of ebook Sales and distribution management: Decisions, strategies, and cases provides readers with contents including: personal selling and marketing strategy; sales management and the business enterprise; sales management, personal selling, and salesmanship; setting personalselling objectives; determining salesrelated marketing policies; formulating personal selling strategy; organizing the sales effort; the effective sales... Đề tài Hoàn thiện công tác quản trị nhân sự tại Công ty TNHH Mộc Khải Tuyên được nghiên cứu nhằm giúp công ty TNHH Mộc Khải Tuyên làm rõ được thực trạng công tác quản trị nhân sự trong công ty như thế nào từ đó đề ra các giải pháp giúp công ty hoàn thiện công tác quản trị nhân sự tốt hơn trong thời gian tới.
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b76ae 1592ff8e 63eb f42 c19 6b4e 12415 4cc9ae7 9f3 34b 4ff81fc08e7 f157 c55 64f5d7e 0d0 b616 f418 78ddc6 c0a3 3da66 3243 588b128 c0 7e0e875 d038 1c6 12a3 c660 2b1e c6b1d05 b9 cc6 f02 11d9 93d8 2ab8 c510 c6e 2f3 7cf78f9aeb78 42a85 d478 d5e b2f44c4d87 5da7 c36a2 c1a9 f55 baf5 d9e0 2ce8 c5 4c13 fcf09d1ef3f6 867ac773 fc0 c859 d3 f430e 90b3 6fe3 2a401 d79a7a 3c2 6f8 c7a175 df1a3207 5f6a 3e081 53c84e7a0 533 c10 d158e 0d50fb4a 8d8 b94 f2f729 f e3924 f47d6743 b4f31e17 9d5 f11 f82 d7b7ad3 f784 82b5 c65 c58 3a56 f501e 23a1 1355bea 1087 be4b57d7 b92 7eff6702 465a1 b9d2 3a389 409 c39a30 312b5fe0 6fe 83d9db3e7 ee33a f8e51 c5 b8a853 8d7 00313 f5 dc2a d936 3a3ef7f7 2d89 306e6 31 c5d9 60b3 6f9 be71 39ed 724a60 c06 662a7a 184bce6 c86 b21d3877 b18 c8be 6db82 e3083a1 fe11 b4350 0a251 996a f4025 1e525 90e0e 9e235 6dd348 f7e13 982 b5913 62b8ff4 cfb7b2 b498 1e6 c5e54 de90e 94c0130 0f8e 5158 f5 b0044 471 f83d013 f7 ab27a6e2 e738a2 f0 c256 bd5 9b74 d78e 78c6c1 597b758e5 5e7 f9d6 025 c9f2685a 6e S A L E S AND DISTRIBUTION MANAGEMENT S A L E S AND DISTRIBUTION MANAGEMENT DECISIONS, STRATEGIES, AND CASES Richard R Still | Edward W Cundiff Norman A P Govoni | Sandeep Puri 6e DECISIONS, STRATEGIES, AND CASES This updated edition presents an incisive analysis of a sales manager’s job responsibilities, and planning and implementation of sales and distribution programs It provides a contemporary perspective on sales and distribution management, and brings to life "real-world" decisions with a set of pertinent case studies AJAY KOHLI Gary T and Elizabeth R Chair, and Professor of Marketing Scheller College of Business, Georgia Tech Innovation in sales and distribution strategies is rapidly evolving Sales and Distribution Management is undergoing a paradigm shift, and this updated edition presents an analysis of the sales manager’s job, the duties and responsibilities involved, and the planning and implementation of sales and distribution programs The educators, practitioners, and students will gain an understanding of the sales manager's role in different circumstances V KUMAR Editor-in-Chief, Journal of Marketing Richard and Susan Lenny Distinguished Chair & Professor of Marketing, J Mack Robinson College of Business, Georgia State University H I G H L I G H T S O F T H I S E D I T I O N Several recent and up-to-date examples and case studies have been included new chapters on Distribution Management emphasizing the role of channel partners, channel management, channel information systems, logistics and supply chain management have been included www.pearson.co.in Online resources available at www.pearsoned.co.in/richardrstill This edition is manufactured in India and is authorized for sale only in India, Bangladesh, Bhutan, Pakistan, Nepal, Sri Lanka and the Maldives Size: 172x235 mm Spine: 21 mm ISBN: 9789332587090 Cover image: Shutterstock All chapters have been modified keeping in mind the Indian perspective SALES AND DISTRIBUTION MANAGEMENT Congratulations to Dr Sandeep Puri for revising and updating the classic textbook on Sales Management Selling and distribution are the two most essential functions in Marketing I am sure this book will help the educators and students with its contemporary perspective on Sales and Distribution Management JAGDISH SHETH Charles H Kellstadt Professor of Marketing Goizueta Business School, Emory University 6e ISBN 978-93-325-8709-0 789332 587090 Richard R Still Edward W Cundiff Norman A P Govoni Sandeep Puri Still Cundiff Govoni Puri Territory line mQuest 5bf0 8353 c6efdbdd55 f94 60367a 1a219 0195 fc1 fcd0c51c8d69 d7b77634a 0f8 69ab9dc90 892a7 0207 c48a0 db5 3f2 0064 b062 34d1 47a6 c5ac6 f61 f46 4c4 93c48 b7d20 d8e b72e0 7b60a 2e0b0b8e 4dc823abf16 00f6a5dbf8 bb1 ce7e 331fc9 f6d5 61dfc02a7 865de7f527b4a2c7f9 181d03d3 c90 c76 097 c4be 2f0 79d9 8dc717 b63 d9ff8673a 44a76 b8f5e875a 5f2 69ab4 435 f924 7f0 14749 5e249 7b3e 7c4 4675 58 a68d979 76fb5 f9312 d84 bc0 d5fb1e 614f9149 8e5b18389 4b5 d3f5200 5b0a5 01f 5b24e3ff 582d497e b5e27 03138 dd3 1d4 935b7548 cb4 0bf4dc0b9 cc25f6605 8a7 d0b39 b849a ef6 d3b82d6 1e55aa4 47a34 c19 f1b977a49 82f9c4 b81 6a3f9 3259 76 f7cbf9 9403 fe5d295b259d7b9 0dd2 f3e d757 d235 55a08 61d5 f0 be5b93b8 4d25 66eb79 c37 b3 c8cd674a 1c0 3b83 b6b1a10 c78b25a7e4 c83 022e f059 588b21421 d 6ed08 c1b78eea c177fb5 3b2 b24 f40d34eb de7a3a 6f0 517d83b8 e8d5 c78 79206 c365aa2 22e58 532a1e 8c1 6b1 69ef501dfc48994 e3e07 e54a5 d7ee4 407a2e 9617 b5f8 82b2 f6 b852e 6307 3280a b5b8 78bc4dcdfcc6ff6b2f2 0d30 7e9d0f4 35fb32 11e0e9 de8ba 18d7 02a2 c92 c0cb784 4ac6 0f26 c1 c054 6b04 c8 cd1 24f53e34 e989 007831 f08 be8d9d7ff3 b76ae 1592ff8e 63eb f42 c19 6b4e 12415 4cc9ae7 9f3 34b 4ff81fc08e7 f157 c55 64f5d7e 0d0 b616 f418 78ddc6 c0a3 3da66 3243 588b128 c0 7e0e875 d038 1c6 12a3 c660 2b1e c6b1d05 b9 cc6 f02 11d9 93d8 2ab8 c510 c6e 2f3 7cf78f9aeb78 42a85 d478 d5e b2f44c4d87 5da7 c36a2 c1a9 f55 baf5 d9e0 2ce8 c5 4c13 fcf09d1ef3f6 867ac773 fc0 c859 d3 f430e 90b3 6fe3 2a401 d79a7a 3c2 6f8 c7a175 df1a3207 5f6a 3e081 53c84e7a0 533 c10 d158e 0d50fb4a 8d8 b94 f2f729 f e3924 f47d6743 b4f31e17 9d5 f11 f82 d7b7ad3 f784 82b5 c65 c58 3a56 f501e 23a1 1355bea 1087 be4b57d7 b92 7eff6702 465a1 b9d2 3a389 409 c39a30 312b5fe0 6fe 83d9db3e7 ee33a f8e51 c5 b8a853 8d7 00313 f5 dc2a d936 3a3ef7f7 2d89 306e6 31 c5d9 60b3 6f9 be71 39ed 724a60 c06 662a7a 184bce6 c86 b21d3877 b18 c8be 6db82 e3083a1 fe11 b4350 0a251 996a f4025 1e525 90e0e 9e235 6dd348 f7e13 982 b5913 62b8ff4 cfb7b2 b498 1e6 c5e54 de90e 94c0130 0f8e 5158 f5 b0044 471 f83d013 f7 ab27a6e2 e738a2 f0 c256 bd5 9b74 d78e 78c6c1 597b758e5 5e7 f9d6 025 c9f2685a OTHER BOOKS OF INTEREST Global Marketing Author Gautam Dutta, IIFT Kolkata Global Marketing, explores the concept that in most countries around the world, there is a spurt of interest in the globalization of businesses, whether they are small or big This trend is visible in developed as well as in developing nations This book is an attempt to present the structure of global marketing from an Indian perspective in a cohesive and comprehensive manner Rural marketing, 3e Author Pradeep Kashyap The present edition, while retaining the key strengths of the previous edition, builds on it by introducing new material relevant for today's readers The pedagogy of the book has been expanded to make learning easier and interesting It includes learning objectives, chapter opening vignettes, snapshots, memo boxes and many more features Strategic Brand Management, 4e Author Kevin Lane Keller, Ambi M G Parameswaran, Isaac Jacob The fourth edition of Strategic Brand Management offers a comprehensive view of the changing technological, cultural, global and economic environment that brands face The book is wellgrounded in practice and can be easily related to past and current marketing activities, events and case studies 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 About Pearson Pearson is the world’s learning company, with presence across 70 countries worldwide Our unique insights and world-class expertise comes from a long history of working closely with renowned teachers, authors and thought leaders, as a result of which, we have emerged as the preferred choice for millions of teachers and learners across the world We believe learning opens up opportunities, creates fulfilling careers and hence better lives We hence collaborate with the best of minds to deliver you class-leading products, spread across the Higher Education and K12 spectrum Superior learning experience and improved outcomes are at the heart of everything we This product is the result of one such effort Your feedback plays a critical role in the evolution of our products and you can contact us – reachus@pearson.com We look forward to it Sales Management_FM.indd 6/20/2017 10:46:12 AM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 This page is intentionally left blank Sales Management_FM.indd 6/20/2017 10:46:12 AM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 SaleS and diStribution ManageMent decisions, Strategies, and Cases Sixth edition riCHard r Still Florida International University edWard W CundiFF University of Texas at Austin norMan a.P goVoni Babson College SandeeP Puri Institute of Management Technology, Ghaziabad Sales Management_FM.indd 6/20/2017 10:46:12 AM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Copyright © 2017 Pearson India Education Services Pvt Ltd Published by Pearson India Education Services Pvt Ltd, CIN: U72200TN2005PTC057128, formerly known as TutorVista Global Pvt Ltd, licensee of Pearson Education in South Asia No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior written consent This eBook may or may not include all assets that were part of the print version The publisher reserves the right to remove any material in this eBook at any time ISBN: 9789332587090 eISBN: Head Office: 15th Floor, Tower-B, World Trade Tower, Plot No 1, Block-C, Sector-16, Noida 201 301,Uttar Pradesh, India Registered Office: 4th Floor, Software Block, Elnet Software City, TS-140, Block & 9, Rajiv Gandhi Salai, Taramani, Chennai 600 113, Tamil Nadu, India Fax: 080-30461003, Phone: 080-30461060 www.pearson.co.in, Email: companysecretary.india@pearson.com Sales Management_FM.indd 6/20/2017 10:46:12 AM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 to Margaret, PeggY, terrY, and bHaVna Sales Management_FM.indd 6/20/2017 10:46:12 AM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 This page is intentionally left blank Sales Management_FM.indd 6/20/2017 10:46:12 AM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Contents Preface xix Preface to the Sixth edition Part i xxi PerSonal Selling and MarKeting StrategY Sales Management and the business enterprise Evolution of the Sales Department Sales Management Objectives of Sales Management Sales Management and Financial Results Sales Executive as Coordinator Organization and Coordination Planning and Coordination Coordination with Other Elements in the Marketing Program Coordination with the Distributive Network Coordination and Implementation of Overall Marketing Strategy Sales Management and Control Sales Control—Informal and Formal Sales Control and Organization Conclusion Sales Management_FM.indd 6/20/2017 10:46:12 AM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 viii Contents Sales Management, Personal Selling, and Salesmanship 19 Buyer-Seller Dyads Diversity of Personal-Selling Situations Theories of Selling AIDAS Theory of Selling “Right Set of Circumstances” Theory of Selling “Buying Formula” Theory of Selling “Behavioral Equation” Theory SPIN Selling Prospecting Steps in Prospecting Sales Resistance Closing Sales Conclusion Setting Personal-Selling objectives 43 Types of Personal-Selling Objectives Some Important Terms Market Potential Sales Potential Sales Forecast Analyzing Market Potential Market Identification Market Motivation Analysis of Market Potential Market Indexes Sales Potential and Sales Forecasting Sales Forecasting Methods Jury of Executive Opinion Poll of Sales Force Opinion Projection of Past Sales Survey of Customers’ Buying Plans Regression Analysis Econometric Model Building and Simulation Converting Industry Forecast to Company Sales Forecast Derivation of A Sales Volume Objective Evaluation of Forecasts Conclusion determining Sales-related Marketing Policies 67 Product Policies—What to Sell Relation to Product Objectives Product Line Policy Policy Product Quality and Service Policy Product Design Distribution Policies—Who to Sell Policies on Marketing Channels Pricing Policies Policy on Pricing Relative to the Competition Policy on Pricing Relative to Costs Policy on Uniformity of Prices to Different Buyers Policy on List Sales Management_FM.indd 6/20/2017 10:46:12 AM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 206 Sales and Distribution Management; Decisions, Strategies, and Cases CASE 2-3 Monrovia Oil Company Petroleum Company—Decentralization of the National Account Department Monrovia Oil Company, with head offices in New York City, was one of the largest producers of petroleum products in the United States In his monthly meeting with Frank Spriegel, marketing vice-president, Jeff Gasden, vice-president of sales, recommended a reorganization to decentralize the national account department and bring its salespeople under the regional sales managers The purpose was to achieve more coordination between the operations of the regional and division offices, which were engaged in direct marketing, and the national account department, which functioned as a sales contact group in handling special accounts The national account department, functioning as a separate sales organization, was responsible for distribution of gasoline, fuel oils, and industrial lubricants to approximately three hundred companies These customers operated in industries where reciprocity was a major factor in the development of new business This department was headed by a department manager, reporting directly to the vice-president for sales, Gasden The department manager, Grant Newcomb, supervised six sales representatives The purchasing department supplied the manager with a weekly report on all purchases amounting to $25,000 or more The national account manager (Newcomb) kept the sales staff informed of all purchases made by Monrovia from accounts they were now selling and from sources to which sales had not yet been made Sales personnel were responsible for the development of sales to each account assigned to them, and made weekly reports The regional and division offices were notified when a salesperson sold an account, and it was their responsibility to service the account Regional and division offices were strategically located throughout the company’s market area Regional managers, who reported to Jeff Gasden, the vice-president of sales, were assigned five staff specialists Each region was subdivided into three divisions Under the division manager was a T.B.A manager, a retail sales manager, a wholesale sales manager, an indus- Part 2_Case.indd 206 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Cases for Part II 207 trial sales manager, and a superintendent of operations (see Exhibit 1) Each division manager supervised from five to eight salespeople who called on all classes of trade in their territories, including national accounts after the initial contacts had been made The regional and division managers were critical of the national account department They contended that the duplication of sales effort could be avoided by eliminating the department On many occasions, salespeople from the division offices had quoted prices on fuel oil and gasoline that were different from those used by national account representatives Since the division managers were responsible for the business developed by the national account department, they felt it should be their prerogative to quote prices advantageous to their own operations Gasden, the vice-president of sales, thought that more business could be obtained through decentralization of the national account department EXHIBIT Organization Sales Organization the Monrovia Oil Company Sales of the of Monrovia Oil Company Vice-President of Sales Assistant to the Sales Manager Manager National Accounts National Accounts Salespersons T.B.A Manager Regional Managers Retail Sales Manager Industrial Sales Manager Wholesale Sales Manager Supt of Operations Wholesale Sales Manager Supt of Operations Division Managers T.B.A Manager Retail Sales Manager Industrial Sales Manager Sales Personnel Part 2_Case.indd 207 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 208 Sales and Distribution Management; Decisions, Strategies, and Cases rather than through its elimination He made the following proposals to the board of directors at the spring meeting: (1) the national account department should be decentralized, (2) the national account manager should be made an assistant to the vice-president of sales, (3) a national account salesperson should be assigned to each regional office to work with the division managers and their sales personnel, and (4) the activities of the national account salespersons should be coordinated with those of the division sales personnel by the regional managers Grant Newcomb, the national account manager, argued that the national account sales force should continue to report directly to him: “National account salespeople are needed as ‘blockbusters’ or ‘openers’ to get the original purchase from a large account In addition, the national account organization has a career planning advantage These more prestigious sales positions provide a means of promotion and reward to capable salespeople who are not interested in sales management Finally, because of their disproportionate effect on sales, operations, and profits, national accounts require special treatment (even on prices), and each treatment must be coordinated under a single head.” What changes, if any, would you recommend in the organization of the national account department? CASE 2-4 Liberal Software Solutions1 Salvaging Jeopardized Deal Cassandra Anderson works as a sales training manager in Liberal Software Solutions, a renowned provider of accounting softwares Amber Smith, a new sales representative, is taking support from Cassandra during on-thejob training phase An important client meeting is scheduled with Judy Investment Company, one of Liberal’s key customers On stake is a potenName of the company and employees are disguised Part 2_Case.indd 208 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Cases for Part II 209 tial order worth $10,000 During the meeting with Judy’s purchase manager, Amber makes a poor sales presentation, throwing the entire business worth $10,000 in jeopardy Cassandra now needs to coach Amber for this call Which sales-coaching principles could Cassandra use to give a feedback to Amber? How should she initiate such a conversation? Suggest a stepwise plan for this CASE 2-5 Lindsay Sportswear Manufacturer of Sportswear—Sales Department Reorganization Although the current sales organization of Lindsay Sportswear had been effective for a number of years, recent changes in the marketing and distribution of sportswear, as well as changes in Lindsay policies and practices, indicated that a revision of the present sales organization was required Arthur Lindsay, president of Lindsay Sportswear, was concerned with the apparent inability of Jim Frankfort’s sales force to handle the various tasks assigned to it His son, Arthur, Jr., who was registered in an MBA program at Dartmouth, suggested that a reorganization of marketing responsibilities in the firm might solve the problem He explained that a vice-president of marketing could coordinate merthandis-ing, advertising, and selling activities He also suggested that product managers would ensure that each product got a fair share of the time of the sales force Lindsay Sportswear manufactured a wide line of men’s and boys’ sportswear, including sweaters, hunting coats, caps, gloves, sport coats, slacks, sport shirts, jackets, swimwear, walking shorts, and socks Annual sales of $125 million attested to the wide consumer acceptance of the “Lindsay Sportswear” brand The sportswear was distributed directly to 8,000 men’s and boys’ shops and department stores As Lindsay sales increased Part 2_Case.indd 209 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 210 Sales and Distribution Management; Decisions, Strategies, and Cases over the years, the sales organization evolved from a simple line type into a more complex organization, as shown in Exhibit The vice-president of sales was responsible for the administration of the sales department and was concerned with organizing, planning, directing, coordinating, and appraising the total sales operation Regional sales managers were responsible for sales in their territories, field supervision of the branch sales offices, and implementing the sales policies The sales branch managers spent the majority of their time in the field with the sales force Ninety full-line salespersons operated out of twenty sales branch offices The directors of advertising, commercial research, and merchandising reported to the executive vice-president, as did the sales vice-president The advertising director administered the $4,000,000 annual advertising appropriation and, in consultation with the sales vice-president, prepared the advertising budget and examined and approved all work done by the advertising agency The commercial research director planned and conducted surveys for the sales vice-president as well as for other department heads Surveys measuring the market potential for sportswear, the prefer- EXHIBIT Sales Sales Organization of Lindsay Sportswear Organization of Lindsoy Sportswear President Executive Vice-President Vice-President in Charge of Sales Vice-President Treasurer Vice-President Manufacturing Five Regional Sales Managers Twenty Sales Branch Managers Director of Advertising Director of Commercial Research Director of Merchandising Ninety FullLine Salespeople 8,000 Dealers Part 2_Case.indd 210 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Cases for Part II 211 ences of buyers, the frequency of purchase, the attitudes of dealers, and the like were used in establishing sales policies and strategies, setting sales quotas, determining sales territories, selecting dealers, and evaluating sales performances The merchandising director was responsible for coordination of manufacturing and sales, by taking demand preferences on the one hand and manufacturing costs on the other and working out a plan that balanced the two His main function was to determine garment design and specifications and to make sure that dealers and consumers got what they wanted without building up excessive inventory One development that signaled a need for possible change in the sales organization was that sales of boys’ sportswear had more than doubled due to a number of factors such as an increase in the number of individual children’s shops and the growing interest of men’s wear retailers in boys’ wear Thus, boys’ sportswear became the largest seller in the Lindsay Sportswear line, a great change from just five years ago One effect of the boys’ wear sales increase was that Lindsay Sportswear sales personnel were devoting most of their efforts to the easier-to-sell boys’ wear line, at the expense of the men’s wear line Greater dealer and consumer interest in the color, style, and fabrics of men’s sportswear made it necessary to give closer consideration to buyers’ tastes and preferences The salespeople, by virtue of being closest to the market, were in a position to suggest garment-style preferences to the merchandising department One Lindsay salesperson suggested to the merchandising director that a panel of famous personalities be established as style consultants from which would come sportswear ideas the panel considered to be most fashionable The initial panel consisted of several famous golfers The sales of the sportswear selected by the style consultants were good enough to warrant investigation of a possible change in the Lindsay Sportswear sales organization that would permit closer cooperation between the merchandising staff and the sales department As the Lindsay line expanded, it became apparent that the ninety full-line salespeople were spending so much time introducing new seasonal lines and promotions that they were unable to serve dealers properly Much important service work by salespersons was being neglected, such as assistance in stock control, pricing, point-of-purchase display, and training retail salesclerks Neglect of dealer service duties resulted in the loss of some major accounts, who switched to competing lines of men’s sportswear Part 2_Case.indd 211 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 212 Sales and Distribution Management; Decisions, Strategies, and Cases The sales manager, Jim Frankfort, argued that the current organizational structure reflected correct priorities because personal selling was the really important factor in the success of the Lindsay company Sales were dependent on the strength and cooperation of retail outlets, and it was the sales force that achieved the cooperation of the retailers His proposed solution to correct criticisms, therefore, was that the sales department be reorganized to solve three problems: (1) neglect of the full line of sportswear by salespeople who spent most of their sales attention on the fast-selling boys’ wear, (2) the need to improve styling of the line by the merchandising department through closer cooperation with the sales department, and (3) neglect of dealer service by the sales force What are the relative roles of merchandising, advertising, and personal selling for Lindsay Sportswear? Should the sales force be relieved of some of its current responsibilities? How should Lindsay Sportswear have reorganized the structure of its sales department to eliminate the problems outlined in the case? Draw a new organization chart Part 2_Case.indd 212 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Cases for Part II 213 CASE 2-6 Allen Specialty Company Manufacturer of Writing Supplies — Coordination of Advertising, Sales Promotion, and Selling Allen Specialty Company, located in Detroit, Michigan, manufactured a line of ballpoint pens, and mechanical pencils and, in the past five years, had added a line of stationery Allen products were sold to stationery and office supply wholesalers and retailers, as well as to department stores, discount houses, drugstores, variety stores, and supermarkets A field sales force of eighty-two persons operated out of six district sales offices Allen management believed that a critical factor in the company’s sales success was the coordination of its national advertising and the activities of Allen salespeople and dealers The sales promotion program was the responsibility of the sales promotion manager, Jack Biggerstaff, and his staff, in conjunction with the sales planning committee at Allen headquarters in Detroit The sales planning committee consisted of the managers of merchandising, advertising, and marketing research The sales promotion plan, for both new and existing products, described objectives; roles of salespersons and dealers; anticipated sales; the national, local, and trade advertising; and point-ofpurchase displays, deals, premiums, and contest offers With approval of the sales promotion plan by the sales planning committee and the sales promotions manager, Jack Biggerstaff, the sales promotion department prepared sales promotion kits for the Allen sales staff The kit included advertising proofs, product samples, illustrations of the point-of-purchase displays, samples of premiums offered, and a description of the special deal or contest featured in the promotion The sales promotion department prepared a timetable for each promotion plan, showing the date when each advertisement appeared in various media The timetable was distributed to the sales force and dealers to enable them to time their sales and advertising to coincide with the national advertising, thereby achieving full impact from the advertising When the sales promotion plan was approved by headquarters, it was presented to Allen sales personnel at meetings in each of the six district Part 2_Case.indd 213 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 214 Sales and Distribution Management; Decisions, Strategies, and Cases sales offices The sales promotion manager and the field sales promotion manager, who reported to the former and whose job was to work with Allen salespeople and dealers on sales promotion projects, made the presentation Following the meetings, the field sales promotion manager trained the salespeople in proper presentation of the promotion and called on key dealers to enlist their support The sales promotion program used with a recent new product introduction was typical of Allen’s efforts In addition to the objectives and timetables, the sales promotion program included (1) selling tools for Allen sales people—circular letters describing the promotion, a visual presentation portfolio for making promotion presentations, product samples, reprints of consumer advertisements; (2) selling tools for Allen dealers—presentation kits for selling the new product to consumers, mail circulars for dealers to send to consumers, mailing folders for use by dealers, sample folders, and a considerable amount of prize money for dealers’ sales personnel; and (3) advertising support for Allen dealers—advertising in national media and sample folders to be sent to consumers who responded to a coupon offer The sales promotion programs were presented one each week in the district offices in late November and December When the schedule was announced,’ Mike Halloran, assistant sales manager in charge of the Pacific Northwest district called Jack Biggerstaff to complain that the sales promotion orientation session in his district had been scheduled for December 27 during the quiet week when many of his salespeople had found extra time to spend with their families and when several had customarily taken short skiing vacations, Biggerstaff explained that the promotion plan would not be completed until mid-November, and since these sales promotion meetings were conducted by home office personnel in the six sales regions, it was not possible to schedule more than one a week It was tough, but Halloran’s district had drawn the bad week this year Halloran responded that he thought the sales promotion sessions were a waste of time anyhow His salespeople lost two productive days in these sessions, and, in his opinion, knowledge of details of the Allen Company’s advertising and promotion plans didn’t make the sales rep’s job of selling to wholesalers and retailers any easier Anyhow, it was the responsibility of the field sales promotion manager to work with the individual salespeople and call on key dealers He also complained that when these sessions were scheduled in mid-November, they interfered with sales productivity in the busiest season of the year Evaluate the Allen Specially Company’s organization and plan for coordinating sales and advertising How should Biggerstaff answer Halloran’s complaint? Part 2_Case.indd 214 6/19/2017 1:02:20 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Cases for Part II 215 CASE 2-7 Morris Machine Works Manufacturer of Centrifugal Pumps— Relations with Dealers Morris Machine Works, Baldwinsville, New York, was established in 1864 and was the first American company to manufacture centrifugal pumps Morris pumps were sold to industrial users throughout the United States by thirty-two manufacturers representatives, each of whom operated in an exclusive territory Three representatives in Canada handled sales in that country, but all other foreign sales were made through export houses The majority of Morris products were manufactured to users’ specifications, and the company required its representatives to be technically trained Consequently, most representatives either were engineers or included engineers on their staffs The turnover among representatives was low, but the arrangement for splitting commissions on inter-territorial sales had been a continuing source of friction Although the sales manager did not consider this problem of major importance, he decided to review the entire situation Every Morris agent was required to sign an agreement governing his relations with the company (see Exhibit 1) This agreement included a general statement of company policy on the splitting of commissions This statement did not provide specific rules for handling every situation that might arise Consequently, the statement was not useful in handling many disputes among the manufacturer’s agents The initiation, negotiation, and final installation involved with one contract occurred in three separate territories, illustrating the difficulties of reaching an agreement on the division of commissions A large aluminum producer, whose main office was in Richmond, Virginia, was planning to build a plant in Corpus Christi, Texas, and a San Francisco firm was the contractor-engineer Thus, three agents were involved: the Richmond agent who made the sale, the San Francisco agent who did the engineering, and the Corpus Christi agent who was responsible for installation and service All three representatives incurred costs in connection with this sale; therefore, each should have received some compensation The out-of-pocket costs of the Richmond agent were the lowest, but his influence was the Part 2_Case.indd 215 6/19/2017 1:02:21 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 216 Sales and Distribution Management; Decisions, Strategies, and Cases EXHIBIT Standard Form used for Agreements with Manufacturers’ Agents Introduction This Agreement has been adopted for governing the relations between the MORRIS MACHINE WORKS and it Agents, and between the different Agents of the MORRIS MACHINE WORKS in order to promote efficiency and cooperation It is realized that absolute and fast rules cannot be formulated to govern all conditions, but that fairness and justice must supplement all rules All questions as to interpretation of these rules or questions as to points not covered are to be passed upon by the Home Office, and its decisions are to be considered final In accepting the MORRIS MACHINE WORKS account, the Agent agrees to the provisions of these rules Definition of Agent The term AGENT (Representative or District Manager) as employed herein is used to designate such individuals, partnerships, or firms who are regularly accredited MORRIS MACHINE WORKS representatives, who have a definite exclusive territory, who have prices and discounts covering a full line of MORRIS MACHINE WORKS equipment, or in some cases one complete line only of MORRIS MACHINE WORKS manufacture, who not handle any competing product, and who are active in promoting the sale of MORRIS MACHINE WORKS equipment Definition of Territory The term TERRITORY as used herein will designate only the area in which the Agent has exclusive rights to sell MORRIS MACHINE WORKS products, subject to such limitations and exceptions as are hereinafter specified Only such an area will be assigned to an Agent as exclusive territory as he can actually cover; that is, in which the Agent can, and will, personally solicit business Such territory as is not included in any Agent’s exclusive territory will be open to all agents and to the Home Office; but to avoid complications, the Agents should communicate with the Home Office before quoting in the open territory Agents will not solicit in another Agent’s territory except with that Agent’s permission Prices, Price Lists, and Data MORRIS MACHINE WORKS will quote the Agents its best agent’s prices and discounts in all cases, and will furnish price lists, data sheets, drawings, and catalogues as required, and will assist the Part 2_Case.indd 216 6/19/2017 1:02:21 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Cases for Part II EXHIBIT 217 (Continued ) Agent in every way with information and data Price lists, drawings, etc., are the property of MORRIS MACHINE WORKS and subject to return upon request Detailed drawings will not be furnished except in special cases, and when furnished must not be allowed to pass out of the Agent’s hands, and must be returned to the Home Office when their purpose has been accomplished Allocation of Inquiries and Orders An Agent has exclusive rights to solicit and sell MORRIS equipment within his territory, and all inquiries and orders originating in that territory will be referred to, and credited to, that Agent except as provided hereinafter An inquiry received by an Agent from another Agent’s territory is to be referred by him either to the Home Office or direct to the Agent for that territory Inquiries from dealers or from purchasing and engineering departments within an Agent’s territory, for equipment destined to go into another Agent’s territory, may be quoted on by that Agent, particularly if purchases are expected to be made in his territory; but a division must be made of the commission with the Agent into whose territory the equipment will go, as provided hereinafter Direct Quotations by the Home Office The right is reserved by MORRIS MACHINE WORKS to quote and to deal directly, without commission, for any agent in the following cases: On federal and state work that is publicly advertised and covered completely by the specifications To export houses, for shipment outside the United States or Canada To manufacturers, for resale as a component part of that manufacturer’s equipment, to enable that manufacturer to quote competitive prices without the ultimate consumer having to pay two commissions On repair and replacement parts for equipment originally sold through other Agents or direct from the Home Office Commission The Agent’s compensation will be entirely through commissions on sales The Agent will be credited the difference between the sales price and the Agent’s prices Commissions will be paid the Agent as payments are received from the customer except as may be agreed Acceptance of orders is subject to approval by the Home Office Part 2_Case.indd 217 6/19/2017 1:02:21 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 218 Sales and Distribution Management; Decisions, Strategies, and Cases EXHIBIT (Continued ) The Agent, knowing his trade, is given the privilege to fix his commission and add same to the Agent’s price The right is reserved, however, by the Home Office to fix the amount of an Agent’s commission in special cases in accordance with the price lists and discounts The full amount of commission will be paid the Agent on all sales made by him for shipment within his territory If the sale is made by one Agent for shipment into another Agent’s territory, two-thirds of the commission will be paid to the Agent making the sale, and one-third to the territorial Agent If inquiry originates and is preliminarily negotiated in the Agent’s territory into which shipment will go, but must be further negotiated and sale closed in another Agent’s territory, commission will be equally divided If necessary to make a sale by the Home Office for shipment into an Agent’s territory, that Agent is to receive one half of the Agent’s commission No credit or commission will be given an Agent on orders placed in his territory but destined for shipment elsewhere, and which did not originate or were not negotiated in his territory Service and Cooperation In accepting the MORRIS MACHINE WORKS account, the Agent is considered as having assumed an obligation to cooperate with other Agents and with the Home Office in promoting the sale of MORRIS equipment The Agent is to give assistance to prospective customers, regardless of what territory they may come from, in obtaining the required information, in making selections of equipment, in installing and operating MORRIS equipment, etc Duration of Contract The duration of the contract is for one year, and it is self-perpetuating unless three months’ notice to terminate is given by either party MORRIS MACHINE WORKS By: _ Date: _ Accepted by: _ Date: _ Part 2_Case.indd 218 6/19/2017 1:02:21 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 Cases for Part II 219 deciding factor in the sale The agent in Corpus Christi stood to profit from this installation in the future, since he would receive commissions on all repair parts The commission split could have posed a problem for the sales manager, had not the three parties reached a mutual agreement independent of the home office Such problems were not always so easily solved, since disputing parties customarily looked to the Morris sales manager for a final decision It was difficult to work out compromises satisfactory to all parties Because representatives were not employees but independent business people, it also was difficult to enforce such decisions Two solutions had been suggested One was to pay the entire commission to the representative into whose territory shipment was made, regardless of who originated, negotiated, or closed the sale The second suggestion called for a fixed schedule of payments as follows: 10 10 15 25 40 percent percent percent percent percent for first quotation for second quotation to the territory in which equipment was installed to the agent completing the purchase order for influence on the sale Thus far, the sales manager had rejected both proposals Was the sales manager justified in rejecting both proposals? Why or why not? How useful is the form agreement in settling disputes? Part 2_Case.indd 219 6/19/2017 1:02:21 PM 5bf0 8353 c6efdbdd55 f94 60 69ab9dc90 892a7 0207 c48a b7d20 d8e b72e0 7b60a 2e0b 61dfc02a7 865de7f527b4a2 d9ff8673a 44a76 b8f5e875a a68d979 76fb5 f9312 d84 bc0 5b24e3ff 582d497e b5e27 03 d0b39 b849a ef6 d3b82d6 1e f7cbf9 9403 fe5d295b259d7 66eb79 c37 b3 c8cd674a 1c0 6ed08 c1b78eea c177fb5 3b2 c365aa2 22e58 532a1e 8c1 b5f8 82b2 f6 b852e 6307 3280 11e0e9 de8ba 18d7 02a2 c92 007831 f08 be8d9d7ff3 b76a 4ff81fc08e7 f157 c55 64f5d7 7e0e875 d038 1c6 12a3 c660 7cf78f9aeb78 42a85 d478 d5 4c13 fcf09d1ef3f6 867ac773 c7a175 df1a3207 5f6a 3e081 e3924 f47d6743 b4f31e17 9d 1355bea 1087 be4b57d7 b92 83d9db3e7 ee33a f8e51 c5 b c5d9 60b3 6f9 be71 39ed 724 e3083a1 fe11 b4350 0a251 62b8ff4 cfb7b2 b498 1e6 c5e ab27a6e2 e738a2 f0 c256 bd5 220 Sales and Distribution Management; Decisions, Strategies, and Cases CASE 2-8 Vibpure Water Purifiers The sales demonstration2 Vibpure Private Limited (Vibpure) is a growing organization with a wide range of water purifiers, air purifiers, vacuum cleaners, and water dispensers The company was facing acute competition and had achieved 91 percent of its sales target for the first months of 2017 July–December is going to be a crucial period for the company to achieve 100 percent of its annual sales targets The company is going to launch a new water purifier with RO and UV technology This is an advanced water purifier with many competitive advantages Its success is critical for organization Sales of water purifiers usually require demonstrations by the sales persons so it’s important that all sales representatives memorize and practice the demonstration script Hence, the company has developed a sales contest with an award of an HD TV to the best demonstration The contest is planned at zonal levels where all sales representatives of a zone can compete for this There are 200 sales representatives in the organization Eight sales representatives are grouped geographically with a District Sales Manager, who in turn reports to a regional sales manager Vibpure had five Regional Sales Managers (RSMs) representing the North, East, West, South, and Central zones of India These RSMs reported to the general manager of sales Vishesh Chadha is a newly promoted District Sales Manager of Delhi His team has achieved only 88 percent of the sales target for the first months of the year His two sales representatives Brij and Pratibha are not interested in participating in this contest They came to Vishesh one day before the meeting and said, “We don’t have time for this and we need to be out in the market to sell our products.” The sales are low and you are in a dilemma with their proposal How will you manage this situation? Name of the company and employees are disguised Part 2_Case.indd 220 6/19/2017 1:02:21 PM